Tamil Nadu - Chennai

Inadequate infrastructure saps IT growth

CHENNAI: Software exports from Tirunelveli and its feeder towns, Virudhunagar, Kanyakumari and Tuticorin, have been insignificant owing to lack of infrastructure.

The same is the case with Madurai, while Coimbatore is the most favoured IT destination after Chennai and has the potential to earn $1.5 billion, according to C. Umashankar, Managing Director, Electronics Corporation of Tamil Nadu (ELCOT).

Though Tirunelveli and its feeder towns have more than 110 colleges, there are only two IT firms in the area that employ nearly 1,000 people.

To create 30,000-40,000 jobs over the next five years, the ELCOT is setting up an IT park on 500 acres at Gangaikondan to rope in at least 10 firms.

Sutherland has been allotted land and Hexaware granted permission. Honeywell and Satyam Computers have started tapping talent in Madurai.

“With the expiry of the Software Technology Parks of India (STPI) scheme, 90 per cent of the firms are set to lose tax concessions. These firms have their offices in main cities and may not be in a position to earn a huge margin. To avail themselves of the benefits, they will have to move out. Tamil Nadu is a natural choice for them, as Special Economic Zones are coming up in all six Tier-II cities,” says Mr. Umashankar.

Tirunelveli produces 16,040 engineering graduates and 26,500 arts and science graduates every year.

Tuticorin and Virudhunagar are home to big industries, while many in Kanyakumari depend on tourism, agriculture and horticulture for livelihood.

However, key decision-makers have not visited Tiruneveli that has equal good potential.

That is why, ELCOT, together with the State Government and the National Association of Software and Services Companies (NASSCOM), has decided to showcase the strength of all Tier-II cities through interaction with Chief Executive and Chief Financial Officers of IT firms.

“When compared with other countries, India has an edge in IT. But when it comes to low-end Business Process Outsourcing (BPO), Bangalore has been priced out. Naturally, the entrepreneurs are now looking at Tier-II cities. Tamil Nadu has developed infrastructure and skilled manpower. By 2009, the State will have 45 IT Special Economic Zones, so 2008-2009 can be described as the year of opportunity. The BPOs can handle the issue of attrition by employing married women,” says Mr. Umashankar.

To showcase the strength of Tirunelvei and its feeder towns, ELCOT will organise ‘Empower IT,’ a two-day event, on January 18 and 19.

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